If you have a mortgage through the Federal Housing Administration (FHA) or Veterans Administration (VA), you may have other foreclosure alternatives. Contacting Your Loan Servicer. Before you have any conversation with your loan servicer, prepare. Record your income and expenses, and calculate the equity in your home.

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You probably can’t qualify for refinancing. Due to falling property values or negative amortization (more about that later), you may even owe more on your home than you can sell it for. You want to do the right thing without filing for bankruptcy or simply jumping ship, but you really can’t afford your current mortgage. Now what?

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